Understanding ETOs

ETOs are derivatives traded on the ASX. You can use them to gain exposure to the performance of an underlying share or index. ETOs give you the potential to profit from movements in the price of an underlying security, such as a share or index. 
 
Because ETOs are highly leveraged, they also involve greater risks than trading shares. 
 
To learn more about trading options, please see the Understanding Options Trading ASX educational booklet.

Activate ETOs on your account

Before trading ETOs on Macquarie Online Trading, you’ll need to activate ETO trading on your account.

  1. Log into trading.macquarie.com.au with your Macquarie ID and password
  2. Hover on Administration and click ETO Trading on the top menu
  3. Select the account you would like to trade options on
  4. Read and accept the Financial Services Guide, Terms & Conditions, ETO Product Disclosure Statement, ETO Agreement Form, ASX Options Explanatory Booklet and ASX Options Strategies Booklet
  5. Complete the 10-question quiz
  6. Tick I/We hereby acknowledge that I/We have, understood and accept the above
  7. Click Submit
  8. Print and return all pages of the completed and signed ETO agreement form for activation. A copy of the form will be emailed to you.

Trade ETOs

You can trade ETOs on Macquarie Online Trading the same way as a single order for shares. Refer to How to trade shares for details.

What’s the difference between a ‘put’ and ‘call’

If you’re trading equity options, a call gives you the right, but not the obligation, to buy a parcel of shares for a pre-determined exercise price on or before a pre-determined expiry date. 
 
A put is similar, except it gives you the right to sell the shares, rather than buy them. 
 
If you’re trading index options, you receive a cash payment if the underlying index has reached the exercise level on the expiry date. A call option pays if the index has climbed above the exercise level, while a put option pays if the index has fallen below that level.

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